Energylinx News

July 27, 2017

UK to save up to £40bn on energy costs between now and 2050

Ofgem and the government set out plans to upgrade the energy system this week. By developing new technologies and services, they aim to reduce energy bills for consumers in the long term.

Domestic and business customers will have more given more control over how the use and store energy as part of the Industrial Strategy launched by Business and Energy Secretary, Greg Clark. The report, 'Upgrading our energy system' outlines a plan for a smarter energy system that will help homes and businesses make more informed choices about when they use electricity and charge products.

By removing the obstacles currently in place, the government aims to deliver a more flexible energy system and smart technology to make it cheaper for customers.

The UK's energy system has been changing for a while now, with over a quarter of the UK's electricity being generated through renewables such as solar and wind. The report addresses how this change can be embraced to ensure economic benefits for both businesses and households.

New technologies that help store and manage energy are emerging and the cost to produce and run them is dropping. This has provided the UK with an opportunity to create new businesses and jobs. It is thought that improvements to the energy system and the range of smart technologies being developed will help the country save up to £40bn on energy costs between now and 2050.

Business and Energy Secretary Greg Clark said:

"Upgrading our energy system to make sure it is fit for the future is a key part of our Industrial Strategy to deliver a smarter, more flexible energy system. A smarter energy system will create new businesses and high-skilled jobs, while making sure our infrastructure is able to cope with demand.

"It's an important part of our Industrial Strategy, given its potential to reduce energy costs, increase productivity, and put UK businesses in a leading position to export smart energy technology and services to the rest of the world."

By rolling out smart meters and enabling energy suppliers to offer lower tariffs and by making it easier for firms to develop smart appliances and gadgets, the plan will help consumers use energy when it is cheapest or get rewarded for returning it to the grid when it is needed.

Posted on July 27, 2017 at 01:17 PM